This comes a few months after the CBP had taken similar action on products by FGV Holdings Berhad on almost identical grounds.
In a statement, CBP said the issuance of a Withhold Release Order against Sime Darby Plantation palm oil is based on information “that reasonably indicates the presence of all 11 of the International Labour Organisation’s forced labour indicators” in Sime Darby Plantation’s production process.
“This Withhold Release Order demonstrates how essential it is for Americans to research the origins of the everyday products that they purchase,” said CBP Acting Commissioner Mark A Morgan. “American consumers can help end modern slavery by choosing to buy products they know are ethically and humanely sourced.”
CBP said the Withhold Release Order (WRO) would require the detention at all US ports of entry of raw palm oil and processed products containing palm oil produced by Sime Darby Plantation.
However, CBP will provide importers the opportunity to export their shipments or demonstrate that the merchandise was not produced with forced labour.
Previously, Sime Darby responded to allegations of child and forced labour by a US-based group, saying it was in the dark over the specific claims contained in a petition filed against it with the CBP.
The palm oil company said the NGO, Liberty Shared, had not contacted it for a response to the allegations before filing the petition against it.
It said it only had access to the petition summary which contains the issues raised but “without any details on the interviews that were conducted”.
Meanwhile, news agency Associated Press (AP) reported that the NGO had filed a petition to ban the import of palm oil produced by Sime Darby following alleged evidence of child and forced labour on plantations supplying US food and cosmetic companies.
The allegations, including the withholding of wages, retention of passports and inadequate living conditions, were said to have been based on interviews conducted with local and foreign workers over a period of two years.
Liberty Shared managing director Duncan Jepson said the group had also met with civil society groups and scrutinised public disclosures, audit reports and sustainability initiatives.
In the report by AP, the group said it “found that Sime Darby had taken few concrete steps to prevent abuse”.
According to AP, the petition against Sime Darby Plantation follows two others filed against FGV Holdings Bhd by a law firm and coalition of NGOs.
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